DTE Corporate Finance advises on Management Buyout of The New Energy Industries Ltd

BACKGROUND

Headquartered in Manchester, The New Energy Industries Ltd (TNEI) provides specialist energy and environmental consultancy services to a wide range of organisations across numerous sectors. TNEI also has offices in Newcastle, Glasgow and Cape Town.

Rachel Hodges and Nigel Tate, who had managed TNEI since Petrofac, a UK listed company, originally acquired it in 2010, had opened discussions with Petrofac to facilitate an MBO.

BUSINESS NEEDS

Rachel and Nigel were recommended to DTE by their bank to assist with the transaction. Their needs included advice on valuation, how to negotiate with Petrofac, how a deal should be structured and how this should be aligned with the funding that needed to be raised to facilitate the transaction.

DTE SOLUTION

Whilst experienced and successful business operators, the MBO team had never encountered what was ahead of them for the next 4 months. It was also vital for them to continue to focus on the business to ensure it was well placed when the transaction completed.

DTE provided a hands-on, senior-led approach in all aspects of the transaction, including negotiating a structured deal with Petrofac, fundraising debt finance to match the transaction structure and providing sufficiently robust information to the bank to allow participation.

These services, along with the more general transactional advice, allowed for a relatively seamless transition for TNEI from being a large corporate subsidiary to a North West owned SME.